Stockton, Calif. files for Chapter 9 bankruptcy

(Reuters) - Stockton, California became the largest city to file for bankruptcy in U.S.

Stockton, California became the largest city to file for bankruptcy in U.S. history on Thursday, after decades of fiscal mismanagement and a housing-market crash left it unable to pay its workers, pensioners ...

As part of a growing trend, Compton California is on the verge of bankruptcy. When it files (and it will eventually), it will become California's 4th city to do so. The Huffington Post reports Compton Will Run Out Of Funds By September 1 Compton, Calif. could be the fourth city in the Golden State to seek bankruptcy protection.

Stockton, California will become the largest U.S. city to seek protection from its creditors after its leaders approved a budget on Tuesday night based on the city filing for bankruptcy.